The Swedbank Institute of Finance estimates that a mortgage borrower with a solid credit history can save up to $ 10,000. dollars. By comparison, the average salary earner earns such an amount over a year.
Head of the Swedbank Institute of Finance, having a home loan above the average loan amount ($ 55,000) will bring even more credit. It is therefore recommended to look for improvement and maintenance responsibly.
“For many people, for a variety of reasons, those who do not have the best credit rating will shake hands: I am still poorly rated by credit institutions and still struggle to make timely payments. However, when these people start paying their premiums on time, they will improve their credit history in the long run and eventually save, ”says Cvilikienė.
That financial discipline eventually pays off
Is further illustrated by a financial expert. Lending a car 5 ths. A good credit history saves you $ 500 and a down payment of $ 10,000. up to 1.7 thousand. dollars.
According to the head of the Swedbank Institute of Finance, depending on the risk profile of the customer, based on the credit history and the data available to the banks, the customer can save up to a quarter of the interest payments.
Andrius Bogdanovich, head of Good Finance, a credit bureau, said people are increasingly aware of these opportunities, but many are concerned about them too late. “There is a growing awareness in the public that good credit history creates the conditions for more favorable financing. Citizens are wondering how to keep it tidy or repaired, but usually only when they are ready to take out a loan. I would advise you to focus on a few key points before and before borrowing. They will save you thousands of dollars, ”comments the head of Good Finance.
Take a look. If a person does not know exactly what their financial situation is, it is difficult to change anything. It is therefore recommended to consult your credit history report, which is provided free of charge on a yearly basis through the My Good Finance self-service system. The study shows that 76 percent. Consumers start to become interested in their credit history only after banks, leasing, consumer credit or telecommunication companies reject their credit application or hire purchase.
Borrow moderately and moderately
The Bank of Lithuania proposes a 40 percent rule. According to it, you have to calculate to spend up to 40% on loan repayments and interest payments per month. of regular income. The Swedbank Institute of Finance recommends that this share be further reduced by up to 30 percent. If your credit history is strained by excessive financial commitments or excessive borrowing, it’s time to think about lowering your credit appetite.
Do not overlap liabilities. If you see that you are unable to repay your loan or that you are late, consult your bank or another creditor for a loan deferral or other solvency decisions, but do not take a new credit to repay your previous installments. There is one exception – when a financial institution offers to refinance its existing loans on more favorable terms.
Do not borrow for a down payment on the loan
Banks are right to require home borrowers to have 15 percent. its value down payment. Not only will you try to borrow it from another bank or credit institution, it will not only worsen your credit history, but also place an excessive financial burden on you.
Cover any overdue payments, if any. You have a record of overdue payments in your credit history of $ 240K. population. Of these, as many as 27 thousand. late payments of up to $ 10. The sooner you cover them, the sooner your credit history begins to repair.
“Starting to improve your credit history will not only pave the way for a future home loan or new car lease, but you will also have long-term habits of paying down,” adds J. Cvilikiene, Head of the Swedbank Institute of Finance.